credit card debt for elderly

credit card debt for elderly

If an elderly person has credit card debt (25k), is it worth getting some sort of credit protector coverage in the short term to help avoid the debt being eventually paid from the estate? and how much does it approx. cost? thank you for any help

Re: credit card debt for elderly

Fred2280 wrote:

If an elderly person has credit card debt (25k), is it worth getting some sort of credit protector coverage in the short term to help avoid the debt being eventually paid from the estate? and how much does it approx. cost? thank you for any help

Re: credit card debt for elderly

Fred2280 wrote:

If an elderly person has credit card debt (25k), is it worth getting some sort of credit protector coverage in the short term to help avoid the debt being eventually paid from the estate? and how much does it approx. cost? thank you for any help

Please explain in what situation you are referring.

If the person is elderly and dependent on SSI as only benefit/income that cannot be attached, although accounts it is deposited into can be.

If the person is elderly and suddenly hospitalized and will income not be enough to pay coverage?

If the person is elderly and dies (as any person) all debts must be paid from the "estate" before there is anything to be left to anyone.

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Re: credit card debt for elderly

Fred2280 wrote:

If an elderly person has credit card debt (25k), is it worth getting some sort of credit protector coverage in the short term to help avoid the debt being eventually paid from the estate? and how much does it approx. cost? thank you for any help

I could be wrong, but it looks like it is just an expensive form of life insurance.

Discover and a few others try to sell me that product on a continual basis and I believe the premium every month is 1% of your statement balance. I remember reading somewhere in their terms that they only issue coverage up to a certain age -- perhaps it was 70.

You'd need to look at your individual circumstances to decide if obtaining any kind of credit protection coverage is necessary. If one's only assets are held jointly by a surving spouse or other relative, there may be nothing in the estate with which to pay any creditors anyhow. Unless you live in a community property state or the accounts are held jointly, any surviving spouse would likely not be held liable for any debt. Even if the debts were joint, a surviving spouse whose sole source of income is Social Security is pretty much judgment-proof anyhow.

Re: credit card debt for elderly

usmc58555 wrote:

Fred2280 wrote:

If an elderly person has credit card debt (25k), is it worth getting some sort of credit protector coverage in the short term to help avoid the debt being eventually paid from the estate? and how much does it approx. cost? thank you for any help

Please explain in what situation you are referring.

1. If the person is elderly and dependent on SSI as only benefit/income that cannot be attached, although accounts it is deposited into can be.

2. If the person is elderly and suddenly hospitalized and will income not be enough to pay coverage?

3. If the person is elderly and dies (as any person) all debts must be paid from the "estate" before there is anything to be left to anyone.

1. That money could not be likely attached unless the individual were somehow liable for the debt and there was a judgment. Generally if an account is attached that contains only SSI funds, the attachment can be rendered invalid and any money taken recovered.

2. Usually premiums for credit protection coverage are based on a percentage of statement balance. If you pay your bill before the billing cycle ends and a $0 balance reports on the statement, there is no fee.

3. All unsecured debts are on an equal footing assuming there is anything of value that even passes to the estate. The whole area of probate law is confusing even to those attorneys who specialize in it. There are various scenarios / legal strategies under which assets which would otherwise pass to the estate are unavailable to creditors.

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IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.